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Eastman Publishing Company is considering publishing an electronic textbook about spreadsheet applications for business. The fixed cost of manuscript plans to sell single-user access to
Eastman Publishing Company is considering publishing an electronic textbook about spreadsheet applications for business. The fixed cost of manuscript plans to sell single-user access to the book for $49. (a) Build a spreadsheet model in Excel to calculate the profit/loss for a given demand. What profit can be anticipated with a demand of 3,400 copies? For subtractive or negative numbers use a minus sign. 4 (b) Use a data table to vary demand from 1,000 to 6,000 in increments of 200 to test the sensitivity of profit to demand. Breakeven occurs where profit goes from a negative to a positive value, that is, breakeven is where total revenue = total cost yielding a profit of zero. In which interval of demand breakeven occur? (i) Breakeven appears in the interval of 3,000 to 3,200 copies. (ii) Breakeven appears in the interval of 3,400 to 3,600 copies. (iii) Breakeven appears in the interval of 3,600 to 3,800 copies. (iv) Breakeven appears in the interval of 3,800 to 4,000 copies. (c) Use Goal Seek to determine the access price per copy that the publisher must charge to break even with a demand of 3,400 copies. If required, round your answer to two decimal places. (d) Consider the following scenarios: yields the highest profit of $ yields the lowest profit of $ Eastman Publishing Company is considering publishing an electronic textbook about spreadsheet applications for business. The fixed cost of manuscript plans to sell single-user access to the book for $49. (a) Build a spreadsheet model in Excel to calculate the profit/loss for a given demand. What profit can be anticipated with a demand of 3,400 copies? For subtractive or negative numbers use a minus sign. 4 (b) Use a data table to vary demand from 1,000 to 6,000 in increments of 200 to test the sensitivity of profit to demand. Breakeven occurs where profit goes from a negative to a positive value, that is, breakeven is where total revenue = total cost yielding a profit of zero. In which interval of demand breakeven occur? (i) Breakeven appears in the interval of 3,000 to 3,200 copies. (ii) Breakeven appears in the interval of 3,400 to 3,600 copies. (iii) Breakeven appears in the interval of 3,600 to 3,800 copies. (iv) Breakeven appears in the interval of 3,800 to 4,000 copies. (c) Use Goal Seek to determine the access price per copy that the publisher must charge to break even with a demand of 3,400 copies. If required, round your answer to two decimal places. (d) Consider the following scenarios: yields the highest profit of $ yields the lowest profit of $
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